Oil steadied as equity markets ticked higher and traders waited for the next set of clues on the outlook for crude demand in the US and China.
West Texas Intermediate traded near $80 a barrel after gaining 1.5% over the past three sessions, the longest run of gains since late July. The climb puts the US crude benchmark back close to the level at which it started the year. In broader markets, Asian stocks looked poised to follow US equities higher.
China’s biggest refiner, Sinopec, said that the country’s product demand in the second half would expand at a slower pace than in the first. In the US, meanwhile, there are expectations that the Federal Reserve isn’t yet done with its campaign of monetary tightening to quell too-hot inflation.
Crude is headed for a small monthly loss after jumping in July as supply curbs from OPEC+ producers Saudi Arabia and Russia tightened the market. Still, there’s speculation the US could ease sanctions against Venezuela and Iran, potentially increasing global flows. In addition, Turkey said it was about to conclude technical work on a key Iraqi pipeline, aiming to make it operational again as soon as possible, Energy Minister Alparslan Bayraktar said.
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